Skip to content

In Business.ae

Menu
  • Home
  • News
  • Business
  • Finance
  • Technology
  • Weather
  • General
Menu

Lowe's Companies (LOW) Needs to Be Dumped: Here's Why

Posted on October 7, 2021August 17, 2022 by Curtis Johnson
Finance

Lowe’s Companies (LOW) Needs to Be Dumped: Here’s Why

1 month ago by inbusiness
0 0 0 0

Shares of Lowe's Companies, Inc. LOW, which have shown tremendous growth rate of more than 190% in the past five years, have been struggling in the past six months. In fact, the Zacks Rank #4 (Sell) company’s shares have declined 8.1% in past six months, underperforming the Zacks categorized Building Product-Retail/Wholesale industry which has declined 2.3% in the same time frame. Keep reading to find out the factors weighing down Lowe's shares recently.

Lowe’s disappointed investors with lower-than-expected top and bottom-line for the second quarter in a row, as the company reported third-quarter fiscal 2016 results. The company posted adjusted earnings of 88 cents per share that missed the Zacks Consensus Estimate of 96 cents. Net sales of $15,739 million also fell short of the Zacks Consensus Estimate of $15,798 million.

Following, dismal third-quarter results the company trimmed its fiscal 2016 earnings guidance. Management now envisions fiscal 2016 earnings to be $3.52 per share, sharply down from the previous projection of $4.06. For fiscal 2016, Lowe’s anticipates total sales growth of approximately 9% to 10%. Further, analysts pointed that the company’s expansion into regions where it already operates could cannibalize its sales performance and lower traffic count at existing stores.

Let’s look at Lowe’s earnings estimate revisions in order to get a clear picture of what analysts are thinking about the company. In the past 30 days, the company’s earnings estimates for fiscal 2016 have declined to $3.92 from $4.01. Moreover, its earnings estimates for fiscal 2017 have moved down to 9 cents from $4.57 in same time period.

LOWES COS Price, Consensus and EPS Surprise

LOWES COS Price, Consensus and EPS Surprise | LOWES COS Quote

Stocks to Consider

Better-ranked stocks include Burlington Stores, Inc. BURL, Zumiez, Inc. ZUMZ, both these stocks sport a Zacks Rank #1 (Strong Buy), while The Tile Shop Holdings, Inc. TTS carries  a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Burlington Stores delivered an average positive earnings surprise of 25.6% in the trailing four quarters and has a long-term earnings growth rate of 19.9%.

Zumiez delivered an average positive earnings surprise of 30.9% in the trailing four quarters and has a long-term earnings growth rate of 15%.

Tile Shop Holdings delivered an average positive earnings surprise of 15.1% in the trailing four quarters and has a long-term earnings growth rate of 25%.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LOWES COS (LOW): Free Stock Analysis Report ZUMIEZ INC (ZUMZ): Free Stock Analysis Report BURLINGTON STRS (BURL): Free Stock Analysis Report TILE SHOP HLDGS (TTS): Free Stock Analysis Report To read this article on Zacks.com click here. 

Read More

Related posts:




–
1 month ago

Costco Continues with its Positive Comparable Sales Trend




–
1 month ago

Buckle’s (BKE) Soft Comparable Sales Continue to Hurt Stock




–
1 month ago

Tessera Closes DTS Buyout, Aims to Spread in Audio Solutions




–
1 month ago

McCormick (MKC) Gains Despite Headwinds: Time to Hold?




–
1 month ago

What’s in Store for Violin Memory (VMEM) in Q3 Earnings?




–
1 month ago

Can Arthur J. Gallagher (AJG) Keep Growing on Acquisitions?




–
1 month ago

GoPro Rolls Out Accessory for HERO Cameras, Karma Grip




–
1 month ago

Cato’s Dismal Trend Continues, November Comps Drop 10%




–
1 month ago

KBR Continues to Face Macro Challenges: Should you Hold?




–
1 month ago

Should You Add Reinsurance Group (RGA) Stock to Portfolio?




–
1 month ago

DeVry Education (DV) Prospects Bright on Trump Victory




–
1 month ago

Best Buy and 4 Other Retail Stocks for the Holiday…




–
1 month ago

Kohl’s Corp (KSS) Gains Despite Headwinds: Should We Hold?




–
1 month ago

Why Should You Buy Gibraltar Industries (ROCK) Stock Now?




–
1 month ago

Ormat (ORA) Unit Inks $36M EPC Contract with Cyrq Energy




–
1 month ago

SunPower (SPWR) to Cuts Jobs under Restructuring Initiative




–
1 month ago

Jacobs Completes Liverpool FC’s Stadium Renovation Project




–
1 month ago

Costco (COST) Earnings and Revenues Miss Estimates in Q1

0 0 0 0

Recent Posts

  • Oil Prices Decline Sharply
  • A 12-time Olympic medalist reveals her eating habits during training
  • Dollar Recovers with Dudley's Comments
  • Under the Senate healthcare bill, an oil crash could eventually influence poor Americans’ healthcare
  • How 'wang hong' internet celebrities have transformed Chinese retail

Categories

  • Bankruptcy
  • Black Dress
  • Business
  • Finance
  • General
  • News
  • Technology
  • Weather
© 2025 In Business.ae | Powered by Superbs Personal Blog theme